The Walt Disney Company – The Cohesion Case – is featured chapter .docx

The Walt Disney Company – The Cohesion Case – is featured
chapter 1 of your textbook. The Walt Disney Company is a
publicly traded company. Their stock symbol is: DIS and the
corporate website is www.disney.com (Links to an external
site.)Links to an external site..
When you perform a strategic management case analysis for a
firm, you must find information about what the firm actually is
doing and what the firm plans to do. Comparing what is planned
with what you recommend is an important part of case analysis.
However, you should never recommend different strategies
unless these strategies are the best among all possible options.
Instructions:
1.In this assignment, you will conduct research to determine the
best strategies for The Walt Disney Company to employ in the
next couple of years. Before you make any recommendations,
you must research The Walt Disney Company, the industry
itself and, of course, the competition. In addition to current
practices, you must look for trends and movement.
2.Before you begin this assignment please be sure you that you
have read Chapter 5.
3.Research the Walt Disney Company (DIS) and VIACOM
(VIA). Look for similarities and differences between The Walt
Disney Company and this major competitor. Here is a list of
excellent web sites that you may use for your research:
•www.hoovers.com (Links to an external site.)Links to an
external site.
•https://us.etrade.com/e/t/invest/markets (Links to an external
site.)Links to an external site.
•www.finance.yahoo.com (Links to an external site.)Links to an
external site.
•www.clearstation.com (Links to an external site.)Links to an
external site.

•Next, use the ECPI Online Library to research two or more
recent articles about the strategies employed by firms in the
entertainment/media industry. Here is a list of some of the best
journals to find such corporate strategic information:
•Advanced Management Journal
•Business Horizons
•Long Range Planning
•Journal of Business Strategy
•Strategic Management Journal
•Harvard Business Review
•Sloan Management Review
•California Management Review
•Academy of Management Review
•Summarize your findings in a 2-3 page report entitled
“Strategies Being Pursued by The Walt Disney Company in (1-2
years out).” Your report should include your recommendations
for The Walt Disney Company’s strategies and also any risks
that might be involved.
Note: Be sure to cite your sources using APA format
Project Management Institute
2
A GUIDE TO THE PROJECT MANAGEMENT
BODY OF KNOWLEDGE
(PMBOK® Guide) – Fifth Edition
An American National Standard

ANSI/PMI 99-001-2013
3
Library of Congress Cataloging-in-Publication Data A guide to
the project management body of knowledge
(PMBOK® guide). -- Fifth edition.
pages cm
Includes bibliographical references and index.
ISBN 978-1-935589-67-9 (pbk. : alk. paper) 1. Project
management. I. Project Management Institute. II.
Title: PMBOK guide.
HD69.P75G845 2013
658.4’04--dc23
2012046112
ISBN: 978-1-935589-67-9
Published by:
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6
TABLE OF CONTENTS
1. INTRODUCTION
1.1 Purpose of the PMBOK® Guide
1.2 What is a Project?
1.2.1. The Relationships Among Portfolios, Programs, and
Projects
1.3 What is Project Management?
1.4 Relationships Among Portfolio Management, Program
Management,
Project Management, and Organizational Project Management
1.4.1 Program Management
1.4.2 Portfolio Management

1.4.3 Projects and Strategic Planning
1.4.4 Project Management Office
1.5 Relationship Between Project Management, Operations
Management,
and Organizational Strategy
1.5.1 Operations and Project Management
1.5.2 Organizations and Project Management
1.6 Business Value
1.7 Role of the Project Manager
1.7.1 Responsibilities and Competencies of the Project Manager
1.7.2 Interpersonal Skills of a Project Manager
1.8 Project Management Body of Knowledge
2. ORGANIZATIONAL INFLUENCES AND PROJECT LIFE
CYCLE
2.1 Organizational Influences on Project Management
2.1.1 Organizational Cultures and Styles
2.1.2 Organizational Communications
2.1.3 Organizational Structures
2.1.4 Organizational Process Assets

2.1.5 Enterprise Environmental Factors
7
2.2 Project Stakeholders and Governance
2.2.1 Project Stakeholders
2.2.2 Project Governance
2.2.3 Project Success
2.3 Project Team
2.3.1 Composition of Project Teams
2.4 Project Life Cycle
2.4.1 Characteristics of the Project Life Cycle
2.4.2 Project Phases
3. PROJECT MANAGEMENT PROCESSES
3.1 Common Project Management Process Interactions
3.2 Project Management Process Groups
3.3 Initiating Process Group
3.4 Planning Process Group
3.5 Executing Process Group

3.6 Monitoring and Controlling Process Group
3.7 Closing Process Group
3.8 Project Information
3.9 Role of the Knowledge Areas
4. PROJECT INTEGRATION MANAGEMENT
4.1 Develop Project Charter
4.1.1 Develop Project Charter: Inputs
4.1.2 Develop Project Charter: Tools and Techniques
4.1.3 Develop Project Charter: Outputs
4.2 Develop Project Management Plan
4.2.1 Develop Project Management Plan: Inputs
4.2.2 Develop Project Management Plan: Tools and Techniques
4.2.3 Develop Project Management Plan: Outputs
4.3 Direct and Manage Project Work
8
4.3.1 Direct and Manage Project Work: Inputs
4.3.2 Direct and Manage Project Work: Tools and Techniques

4.3.3 Direct and Manage Project Work: Outputs
4.4 Monitor and Control Project Work
4.4.1 Monitor and Control Project Work: Inputs
4.4.2 Monitor and Control Project Work: Tools and Techniques
4.4.3 Monitor and Control Project Work: Outputs
4.5 Perform Integrated Change Control
4.5.1 Perform Integrated Change Control: Inputs
4.5.2 Perform Integrated Change Control: Tools and Techniques
4.5.3 Perform Integrated Change Control: Outputs
4.6 Close Project or Phase
4.6.1 Close Project or Phase: Inputs
4.6.2 Close Project or Phase: Tools and Techniques
4.6.3 Close Project or Phase: Outputs
5. PROJECT SCOPE MANAGEMENT
5.1 Plan Scope Management
5.1.1 Plan Scope Management: Inputs
5.1.2 Plan Scope Management: Tools and Techniques
5.1.3 Plan Scope Management: Outputs

5.2 Collect Requirements
5.2.1 Collect Requirements: Inputs
5.2.2 Collect Requirements: Tools and Techniques
5.2.3 Collect Requirements: Outputs
5.3 Define Scope
5.3.1 Define Scope: Inputs
5.3.2 Define Scope: Tools and Techniques
5.3.3 Define Scope: Outputs
5.4 Create WBS
9
5.4.1 Create WBS: Inputs
5.4.2 Create WBS: Tools and Techniques
5.4.3 Create WBS: Outputs
5.5 Validate Scope
5.5.1 Validate Scope: Inputs
5.5.2 Validate Scope: Tools and Techniques
5.5.3 Validate Scope: Outputs

5.6 Control Scope
5.6.1 Control Scope: Inputs
5.6.2 Control Scope: Tools and Techniques
5.6.3 Control Scope: Outputs
6. PROJECT TIME MANAGEMENT
6.1 Plan Schedule Management
6.1.1 Plan Schedule Management: Inputs
6.1.2 Plan Schedule Management: Tools and Techniques
6.1.3 Plan Schedule Management: Outputs
6.2 Define Activities
6.2.1 Define Activities: Inputs
6.2.2 Define Activities: Tools and Techniques
6.2.3 Define Activities: Outputs
6.3 Sequence Activities
6.3.1 Sequence Activities: Inputs
6.3.2 Sequence Activities: Tools and Techniques
6.3.3 Sequence Activities: Outputs
6.4 Estimate Activity Resources

6.4.1 Estimate Activity Resources: Inputs
6.4.2 Estimate Activity Resources: Tools and Techniques
6.4.3 Estimate Activity Resources: Outputs
6.5 Estimate Activity Durations
10
6.5.1 Estimate Activity Durations: Inputs
6.5.2 Estimate Activity Durations: Tools and Techniques
6.5.3 Estimate Activity Durations: Outputs
6.6 Develop Schedule
6.6.1 Develop Schedule: Inputs
6.6.2 Develop Schedule: Tools and Techniques
6.6.3 Develop Schedule: Outputs
6.7 Control Schedule
6.7.1 Control Schedule: Inputs
6.7.2 Control Schedule: Tools and Techniques
6.7.3 Control Schedule: Outputs
7. PROJECT COST MANAGEMENT

7.1 Plan Cost Management
7.1.1 Plan Cost Management: Inputs
7.1.2 Plan Cost Management: Tools and Techniques
7.1.3 Plan Cost Management: Outputs
7.2 Estimate Costs
7.2.1 Estimate Costs: Inputs
7.2.2 Estimate Costs: Tools and Techniques
7.2.3 Estimate Costs: Outputs
7.3 Determine Budget
7.3.1 Determine Budget: Inputs
7.3.2 Determine Budget: Tools and Techniques
7.3.3 Determine Budget: Outputs
7.4 Control Costs
7.4.1 Control Costs: Inputs
7.4.2 Control Costs: Tools and Techniques
7.4.3 Control Costs: Outputs
8. PROJECT QUALITY MANAGEMENT
11

8.1 Plan Quality Management
8.1.1 Plan Quality Management: Inputs
8.1.2 Plan Quality Management: Tools and Techniques
8.1.3 Plan Quality Management: Outputs
8.2 Perform Quality Assurance
8.2.1 Perform Quality Assurance: Inputs
8.2.2 Perform Quality Assurance: Tools and Techniques
8.2.3 Perform Quality Assurance: Outputs
8.3 Control Quality
8.3.1 Control Quality: Inputs
8.3.2 Control Quality: Tools and Techniques
8.3.3 Control Quality: Outputs
9. PROJECT HUMAN RESOURCE MANAGEMENT
9.1 Plan Human Resource Management
9.1.1 Plan Human Resource Management: Inputs
9.1.2 Plan Human Resource Management: Tools and Techniques
9.1.3 Plan Human Resource Management: Outputs

9.2 Acquire Project Team
9.2.1 Acquire Project Team: Inputs
9.2.2 Acquire Project Team: Tools and Techniques
9.2.3 Acquire Project Team: Outputs
9.3 Develop Project Team
9.3.1 Develop Project Team: Inputs
9.3.2 Develop Project Team: Tools and Techniques
9.3.3 Develop Project Team: Outputs
9.4 Manage Project Team
9.4.1 Manage Project Team: Inputs
9.4.2 Manage Project Team: Tools and Techniques
9.4.3 Manage Project Team: Outputs
12
10. PROJECT COMMUNICATIONS MANAGEMENT
10.1 Plan Communications Management
10.1.1 Plan Communications Management: Inputs
10.1.2 Plan Communications Management: Tools and
Techniques

10.1.3 Plan Communications Management: Outputs
10.2 Manage Communications
10.2.1 Manage Communications: Inputs
10.2.2 Manage Communications: Tools and Techniques
10.2.3 Manage Communications: Outputs
10.3 Control Communications
10.3.1 Control Communications: Inputs
10.3.2 Control Communications: Tools and Techniques
10.3.3 Control Communications: Outputs
11. PROJECT RISK MANAGEMENT
11.1 Plan Risk Management
11.1.1 Plan Risk Management: Inputs
11.1.2 Plan Risk Management: Tools and Techniques
11.1.3 Plan Risk Management: Outputs
11.2 Identify Risks
11.2.1 Identify Risks: Inputs
11.2.2 Identify Risks: Tools and Techniques
11.2.3 Identify Risks: Outputs

11.3 Perform Qualitative Risk Analysis
11.3.1 Perform Qualitative Risk Analysis: Inputs
11.3.2 Perform Qualitative Risk Analysis: Tools and Techniques
11.3.3 Perform Qualitative Risk Analysis: Outputs
11.4 Perform Quantitative Risk Analysis
11.4.1 Perform Quantitative Risk Analysis: Inputs
11.4.2 Perform Quantitative Risk Analysis: Tools and
Techniques
13
11.4.3 Perform Quantitative Risk Analysis: Outputs
11.5 Plan Risk Responses
11.5.1 Plan Risk Responses: Inputs
11.5.2 Plan Risk Responses: Tools and Techniques
11.5.3 Plan Risk Responses: Outputs
11.6 Control Risks
11.6.1 Control Risks: Inputs
11.6.2 Control Risks: Tools and Techniques

11.6.3 Control Risks: Outputs
12. PROJECT PROCUREMENT MANAGEMENT
12.1 Plan Procurement Management
12.1.1 Plan Procurement Management: Inputs
12.1.2 Plan Procurement Management: Tools and Techniques
12.1.3 Plan Procurement Management: Outputs
12.2 Conduct Procurements
12.2.1 Conduct Procurements: Inputs
12.2.2 Conduct Procurements: Tools and Techniques
12.2.3 Conduct Procurements: Outputs
12.3 Control Procurements
12.3.1 Control Procurements: Inputs
12.3.2 Control Procurements: Tools and Techniques
12.3.3 Control Procurements: Outputs
12.4 Close Procurements
12.4.1 Close Procurements: Inputs
12.4.2 Close Procurements: Tools and Techniques
12.4.3 Close Procurements: Outputs

13. PROJECT STAKEHOLDER MANAGEMENT
13.1 Identify Stakeholders
13.1.1 Identify Stakeholders: Inputs
14
13.1.2 Identify Stakeholders: Tools and Techniques
13.1.3 Identify Stakeholders: Outputs
13.2 Plan Stakeholder Management
13.2.1 Plan Stakeholder Management: Inputs
13.2.2 Plan Stakeholder Management: Tools and Techniques
13.2.3 Plan Stakeholder Management: Outputs
13.3 Manage Stakeholder Engagement
13.3.1 Manage Stakeholder Engagement: Inputs
13.3.2 Manage Stakeholder Engagement: Tools and Techniques
13.3.3 Manage Stakeholder Engagement: Outputs
13.4 Control Stakeholder Engagement
13.4.1 Control Stakeholder Engagement: Inputs
13.4.2 Control Stakeholder Engagement: Tools and Techniques

13.4.3 Control Stakeholder Engagement: Outputs
ANNEX A1 THE STANDARD FOR PROJECT MANAGEMENT
OF A
PROJECT
APPENDIX X1 FIFTH EDITION CHANGES
APPENDIX X2 CONTRIBUTORS AND REVIEWERS OF THE
PMBOK®
GUIDE – FIFTH EDITION
APPENDIX X3 INTERPERSONAL SKILLS
REFERENCES
GLOSSARY
15
LIST OF TABLES AND FIGURES
Figure 1-1. Portfolio, Program, and Project Management
Interactions
Figure 2-1. Functional Organization
Figure 2-2. Weak Matrix Organization
Figure 2-3. Balanced Matrix Organization
Figure 2-4. Strong Matrix Organization
Figure 2-5. Projectized Organization

Figure 2-6. Composite Organization
Figure 2-7. The Relationship Between Stakeholders and the
Project
Figure 2-8. Typical Cost and Staffing Levels Across a Generic
Project Life
Cycle Structure
Figure 2-9. Impact of Variable Based on Project Time
Figure 2-10. Example of a Single-Phase Project
Figure 2-11. Example of a Three-Phase Project
Figure 2-12. Example of a Project with Overlapping Phases
Figure 2-13. Example of Predictive Life Cycle
Figure 3-1. Project Management Process Groups
Figure 3-2. Process Groups Interact in a Phase or Project
Figure 3-3. Project Management Process Interactions
Figure 3-4. Project Boundaries
Figure 3-5. Project Data, Information and Report Flow
Figure 3-6. Data Flow Diagram Legend
Figure 4-1. Project Integration Management Overview
Figure 4-2. Develop Project Charter: Inputs, Tools and
Techniques, and
Outputs

Figure 4-3. Develop Project Charter Data Flow Diagram
Figure 4-4. Develop Project Management Plan: Inputs, Tools &
Techniques,
and Outputs
Figure 4-5. Develop Project Management Plan Data Flow
Diagram
16
Figure 4-6. Direct and Manage Project Work: Inputs, Tools and
Techniques,
and Outputs
Figure 4-7. Direct and Manage Project Work: Data Flow
Diagram
Figure 4-8. Monitor and Control Project Work: Inputs, Tools &
Techniques,
and Outputs
Figure 4-9. Monitor and Control Project Work Data Flow
Diagram
Figure 4-10. Perform Integrated Change Control: Inputs, Tools
& Techniques,
and Outputs
Figure 4-11. Perform Integrated Change Control Data Flow
Diagram
Figure 4-12. Close Project or Phase: Inputs, Tools &

Techniques, and Outputs
Figure 4-13. Close Project or Phase Data Flow Diagram
Figure 5-1. Project Scope Management Overview
Figure 5-2. Plan Scope Management: Inputs, Tools &
Figure 5-3. Plan Scope Management Data Flow Diagram
Figure 5-4. Collect Requirements: Inputs, Tools & Techniques,
and Outputs
Figure 5-5. Collect Requirements Data Flow Diagram
Figure 5-6. Example of a Requirements Traceability Matrix
Figure 5-7. Define Scope: Inputs, Tools & Techniques, and
Outputs
Figure 5-8. Define Scope Data Flow Diagram
Figure 5-9. Create WBS: Inputs, Tools & Techniques, and
Outputs
Figure 5-10. Create WBS Data Flow Diagram
Figure 5-11. Sample WBS Decomposed Down Through Work
Packages
Figure 5-12. Sample WBS Organized by Phase
Figure 5-13. Sample WBS with Major Deliverables
Figure 5-14. Validate Scope: Inputs, Tools & Techniques, and

Outputs
Figure 5-15. Validate Scope Data Flow Diagram
Figure 5-16. Control Scope: Inputs, Tools & Techniques, and
Outputs
Figure 5-17. Control Scope Data Flow Diagram
Figure 6-1. Project Time Management Overview
Figure 6-2. Scheduling Overview
17
Figure 6-3. Plan Schedule Management: Inputs, Tools &
Techniques, and
Outputs
Figure 6-4. Plan Schedule Management Data Flow Diagram
Figure 6-5. Define Activities: Inputs, Tools & Techniques, and
Outputs
Figure 6-6. Define Activities Data Flow Diagram
Figure 6-7. Sequence Activities: Inputs, Tools & Techniques,
and Outputs
Figure 6-8. Sequence Activities Data Flow Diagram
Figure 6-9. Precedence Diagramming Method (PDM)
Relationship Types

Figure 6-10. Examples of Lead and Lag
Figure 6-11. Project Schedule Network Diagram
Figure 6-12. Estimate Activity Resources: Inputs, Tools &
Techniques, and
Outputs
Figure 6-13. Estimate Activity Resources Data Flow Diagram
Figure 6-14. Estimate Activity Durations: Inputs, Tools &
Techniques, and
Outputs
Figure 6-15. Estimate Activity Durations Data Flow Diagram
Figure 6-16 Develop Schedule: Inputs, Tools & Techniques, and
Outputs
Figure 6-17. Develop Schedule Data Flow Diagram
Figure 6-18. Example of Critical Path Method
Figure 6-19. Example of Critical Chain Method
Figure 6-20. Resource Leveling
Figure 6-21. Project Schedule Presentations—Examples
Figure 6-22. Control Schedule: Inputs, Tools & Techniques, and
Outputs
Figure 6-23. Control Schedule Data Flow Diagram
Figure 7-1. Project Cost Management Overview

Figure 7-2. Plan Cost Management: Inputs, Tools & Techniques,
and Outputs
Figure 7-3. Plan Cost Management: Data Flow Diagram
Figure 7-4. Estimate Costs: Inputs, Tools & Techniques, and
Outputs
Figure 7-5. Estimate Costs Data Flow Diagram
Figure 7-6. Determine Budget: Inputs, Tools & Techniques, and
Outputs
18
Figure 7-7. Determine Budget Data Flow Diagram
Figure 7-8. Project Budget Components
Figure 7-9. Cost Baseline, Expenditures, and Funding
Requirements
Figure 7-10. Control Costs: Inputs, Tools & Techniques, and
Outputs
Figure 7-11. Control Costs Data Flow Diagram
Figure 7-12. Earned Value, Planned Value, and Actual Costs
Figure 7-13. To-Complete Performance Index (TCPI)
Figure 8-1. Project Quality Management Overview
Figure 8-2. Fundamental Relationships of Quality Assurance

and Control
Quality to the IPECC, PDCA, Cost of Quality Models and
Project Management Process Groups
Figure 8-3. Plan Quality Management Inputs, Tools &
Figure 8-4. Plan Quality Management Data Flow Diagram
Figure 8-5. Cost of Quality
Figure 8-6. The SIPOC Model
Figure 8-7. Storyboard Illustrating a Conceptual Example of
Each of the Seven
Basic Quality Tools
Figure 8-8. Perform Quality Assurance: Inputs, Tools &
Techniques, and
Outputs
Figure 8-9. Perform Quality Assurance Data Flow Diagram
Figure 8-10. Storyboard Illustrating the Seven Quality
Management and
Control Tools
Figure 8-11. Control Quality: Inputs, Tools & Techniques, and
Outputs
Figure 8-12. Control Quality Data Flow Diagram
Figure 9-1. Project Human Resource Management Overview
Figure 9-2. Plan Human Resource Management: Inputs, Tools &
Techniques,

and Outputs
Figure 9-3. Plan Human Resource Management Data Flow
Diagram
Figure 9-4. Roles and Responsibility Definition Formats
Figure 9-5. RACI Matrix
Figure 9-6. Illustrative Resource Histogram
19
Figure 9-7. Acquire Project Team: Inputs, Tools & Techniques,
and Outputs
Figure 9-8. Acquire Project Team Data Flow Diagram
Figure 9-9. Develop Project Team: Inputs, Tools & Techniques,
and Outputs
Figure 9-10. Develop Project Team Data Flow Diagram
Figure 9-11. Manage Project Team: Inputs, Tools & Techniques,
and Outputs
Figure 9-12. Manage Project Team Data Flow Diagram
Figure 10-1. Project Communications Management Overview
Figure 10-2. Plan Communications Management: Inputs, Tools
& Techniques,
and Outputs

Figure 10-3. Plan Communications Management Data Flow
Diagram
Figure 10-4. Basic Communication Model
Figure 10-5. Manage Communications: Inputs, Tools &
Techniques, and
Outputs
Figure 10-6. Manage Communications Data Flow Diagram
Figure 10-7. Control Communications: Inputs, Tools &
Techniques, and
Outputs
Figure 10-8. Control Communications Data Flow Diagram
Figure 11-1. Project Risk Management Overview
Figure 11-2. Plan Risk Management: Inputs, Tools &
Figure 11-3. Plan Risk Management Data Flow Diagram
Figure 11-4. Example of a Risk Breakdown Structure (RBS)
Figure 11-5. Identify Risks: Inputs, Tools & Techniques, and
Outputs
Figure 11-6. Identify Risks Data Flow Diagram
Figure 11-7. Influence Diagram
Figure 11-8. Perform Qualitative Risk Analysis: Inputs, Tools &
Techniques,
and Outputs

Figure 11-9. Perform Qualitative Risk Analysis Data Flow
Diagram
Figure 11-10. Probability and Impact Matrix
Figure 11-11. Perform Quantitative Risk Analysis: Inputs, Tools
& Techniques,
and Outputs
20
Figure 11-12. Perform Quantitative Risk Analysis Data Flow
Diagram
Figure 11-13. Range of Project Cost Estimates Collected During
the Risk
Interview
Figure 11-14. Examples of Commonly Used Probability
Distributions
Figure 11-15. Example of Tornado Diagram
Figure 11-16. Decision Tree Diagram
Figure 11-17. Cost Risk Simulation Results
Figure 11-18. Plan Risk Responses: Inputs, Tools &
Figure 11-19. Plan Risk Responses Data Flow Diagram
Figure 11-20. Control Risks: Inputs, Tools & Techniques, and

Outputs
Figure 11-21. Control Risks Data Flow Diagram
Figure 12-1. Project Procurement Management Overview
Figure 12-2. Plan Procurements: Inputs, Tools & Techniques,
and Outputs
Figure 12-3. Plan Procurement Management Data Flow Diagram
Figure 12-4. Conduct Procurements: Inputs, Tools &
Figure 12-5. Conduct Procurements Data Flow Diagram
Figure 12-6. Control Procurements: Inputs, Tools & Techniques,
and Outputs
Figure 12-7. Control Procurements Data Flow Diagram
Figure 12-8. Close Procurements: Inputs, Tools & Techniques,
and Outputs
Figure 12-9. Close Procurements Data Flow Diagram
Figure 13-1. Project Stakeholder Management Overview
Figure 13-2. Identify Stakeholders: Inputs, Tools & Techniques,
and Outputs
Figure 13-3. Identify Stakeholders Data Flow Diagram
Figure 13-4. Example Power/Interest Grid with Stakeholders
Figure 13-5. Plan Stakeholder Management: Inputs, Tools &

Techniques, and
Outputs
Figure 13-6. Plan Stakeholder Management Data Flow Diagram
Figure 13-7. Stakeholders Engagement Assessment Matrix
Figure 13-8. Manage Stakeholder Engagement: Inputs, Tools &
Techniques,
and Outputs
21
Figure 13-9. Manage Stakeholder Engagement Data Flow
Diagram
Figure 13-10. Control Stakeholder Engagement: Inputs, Tools &
Techniques,
and Outputs
Figure 13-11. Control Stakeholder Engagement: Data Flow
Diagram
Figure A1-1. Process Group Interactions in a Project
Figure A1-2. Project Management Process Interactions
Figure A1-3. Project Boundaries
Figure A1-4. Initiating Process Group
Figure A1-5. Develop Project Charter: Inputs and Outputs
Figure A1-6. Identify Stakeholders: Inputs and Outputs

Figure A1-7. Planning Process Group
Figure A1-8. Develop Project Management Plan: Inputs and
Outputs
Figure A1-9. Plan Scope Management: Inputs and Outputs
Figure A1-10. Collect Requirements: Inputs and Outputs
Figure A1-11. Define Scope: Inputs and Outputs
Figure A1-12. Create WBS: Inputs and Outputs
Figure A1-13. Plan Schedule Management: Inputs and Outputs
Figure A1-14. Define Activities: Inputs and Outputs
Figure A1-15. Sequence Activities: Inputs and Outputs
Figure A1-16. Estimate Activity Resources: Inputs and Outputs
Figure A1-17. Estimate Activity Durations: Inputs and Outputs
Figure A1-18. Develop Schedule: Inputs and Outputs
Figure A1-19. Plan Cost Management: Inputs and Outputs
Figure A1-20. Estimate Costs: Inputs and Outputs
Figure A1-21. Determine Budget: Inputs and Outputs
Figure A1-22. Plan Quality Management: Inputs and Outputs
Figure A1-23. Plan Human Resource Management: Inputs and
Outputs

Figure A1-24. Plan Communications Management: Inputs and
Outputs
Figure A1-25. Plan Risk Management: Inputs and Outputs
22
Figure A1-26. Identify Risks: Inputs and Outputs
Figure A1-27. Perform Qualitative Risk Analysis: Inputs and
Outputs
Figure A1-28. Perform Quantitative Risk Analysis: Inputs and
Outputs
Figure A1-29. Plan Risk Responses: Inputs and Outputs
Figure A1-30. Plan Procurement Management: Inputs and
Outputs
Figure A1-31. Plan Stakeholder Management: Inputs and
Outputs
Figure A1-32. Executing Process Group
Figure A1-33. Direct and Manage Project Work: Inputs and
Outputs
Figure A1-34. Perform Quality Assurance: Inputs and Outputs
Figure A1-35. Acquire Project Team: Inputs and Outputs
Figure A1-36. Develop Project Team: Inputs and Outputs

Figure A1-37. Manage Project Team: Inputs and Outputs
Figure A1-38. Manage Communications: Inputs and Outputs
Figure A1-39. Conduct Procurements: Inputs and Outputs
Figure A1-40. Manage Stakeholder Engagement: Inputs and
Outputs
Figure A1-41. Monitoring and Controlling Process Group
Figure A1-42. Monitor and Control Project Work: Inputs and
Outputs
Figure A1-43. Perform Integrated Change Control: Inputs and
Outputs
Figure A1-44. Validate Scope: Inputs and Outputs
Figure A1-45. Control Scope: Inputs and Outputs
Figure A1-46. Control Schedule: Inputs and Outputs
Figure A1-47. Control Costs: Inputs and Outputs
Figure A1-48. Control Quality: Inputs and Outputs
Figure A1-49. Control Communications: Inputs and Outputs
Figure A1-50. Control Risks: Inputs and Outputs
Figure A1-51. Control Procurements: Inputs and Outputs
Figure A1-52. Control Stakeholder Engagement: Inputs and
Outputs

Figure A1-53. Closing Process Group
Figure A1-54. Close Project or Phase: Inputs and Outputs
23
Figure A1-55. Close Procurements: Inputs and Outputs
Figure X1-1. Refined Data Model
Table 1-1. Comparative Overview of Project, Program, and
Portfolio
Management
Table 2-1. Influence of Organizational Structures on Projects
Table 3-1. Project Management Process Group and Knowledge
Area Mapping
Table 4-1 Differentiation Between the Project Management Plan
and Project
Documents
Table 5-1. Elements of the Project Charter and Project Scope
Statement
Table 7-1. Earned Value Calculations Summary Table
Table 11-1. Definition of Impact Scales for Four Project
Objectives
Table A1-1. Project Management Process Group and Knowledge
Area

Mapping
Table X1-1. Section 4 Changes
24
1
INTRODUCTION
A Guide to the Project Management Body of Knowledge
(PMBOK® Guide) –
Fifth Edition provides guidelines for managing individual
projects and defines
project management related concepts. It also describes the
project management life

cycle and its related processes, as well as the project life cycle.
The PMBOK® Guide contains the globally recognized standard
and guide for the
project management profession (found in Annex A1). A
standard is a formal
document that describes established norms, methods, processes,
and practices. As
with other professions, the knowledge contained in this standard
has evolved from
the recognized good practices of project management
practitioners who have
contributed to the development of this standard.
The first two sections of the PMBOK® Guide provide an
introduction to key
concepts in the project management field. Section 3 summarizes
the Process Groups
and provides an overview of process interactions among the ten
Knowledge Areas
and five Process Groups. Sections 4 through 13 are the guide to
the project
management body of knowledge. These sections expand on the
information in the
standard by describing the inputs and outputs, as well as tools
and techniques used
in managing projects. Annex A1 is the standard for project
management and
presents the processes, inputs, and outputs that are considered
to be good practice
on most projects most of the time.
This section defines several key terms and the relationship
among portfolio
management, program management, project management and
organizational project

management. An overview of the PMBOK® Guide is found
within the following
sections:
1.4 Relationships Among Portfolio Management, Program
Management,
Project Management, and Organizational Project Management
1.5 Relationship Between Project Management, Operations
Management, and Organizational Strategy
1.6 Business Value
25
The acceptance of project management as a profession indicates
that the
application of knowledge, processes, skills, tools, and
techniques can have a
significant impact on project success. The PMBOK® Guide
identifies that subset of
the project management body of knowledge that is generally

recognized as good
practice. “Generally recognized” means the knowledge and
practices described are
applicable to most projects most of the time, and there is
consensus about their
value and usefulness. “Good practice” means there is general
agreement that the
application of the knowledge, skills, tools, and techniques can
enhance the chances
of success over many projects. “Good practice” does not mean
that the knowledge
described should always be applied uniformly to all projects;
the organization
and/or project management team is responsible for determining
what is appropriate
for any given project.
The PMBOK® Guide also provides and promotes a common
vocabulary within
the project management profession for using and applying
project management
concepts. A common vocabulary is an essential element of a
professional
discipline. The PMI Lexicon of Project Management Terms [1]1
provides the
foundational professional vocabulary that can be consistently
used by project,
program, and portfolio managers and other stakeholders.
Annex A1 is a foundational reference for PMI's project
management professional
development programs. Annex A1 continues to evolve along
with the profession,
and is therefore not all-inclusive; this standard is a guide rather
than a specific
methodology. One can use different methodologies and tools

(e.g., agile, waterfall,
PRINCE2) to implement the project management framework.
In addition to the standards that establish guidelines for project
management
processes, the Project Management Institute Code of Ethics and
Professional
Conduct [2] guides practitioners of the profession and describes
the expectations
that practitioners should hold for themselves and others. The
Project Management
Institute Code of Ethics and Professional Conduct is specific
about the basic
obligation of responsibility, respect, fairness, and honesty. It
requires that
practitioners demonstrate a commitment to ethical and
professional conduct. It
carries the obligation to comply with laws, regulations, and
organizational and
professional policies. Practitioners come from diverse
backgrounds and cultures,
and the Project Management Institute Code of Ethics and
Professional Conduct
applies globally. When interacting with any stakeholder,
practitioners should be
committed to honest, responsible, fair practices and respectful
dealings.
Acceptance of the code is essential for project managers, and is
a requirement for
26
the following PMI® exams:

Certified Associate in Project Management (CAPM)®
Project Management Professional (PMP)®
Program Management Professional (PgMP)®
PMI Agile Certified Practitioner (PMI-ACP)SM
PMI Risk Management Professional (PMI-RMP)®
PMI Scheduling Professional (PMI-SP)®
A project is a temporary endeavor undertaken to create a unique
product,
service, or result. The temporary nature of projects indicates
that a project has a
definite beginning and end. The end is reached when the
project's objectives have
been achieved or when the project is terminated because its
objectives will not or
cannot be met, or when the need for the project no longer exists.
A project may also
be terminated if the client (customer, sponsor, or champion)
wishes to terminate the
project. Temporary does not necessarily mean the duration of
the project is short. It
refers to the project's engagement and its longevity. Temporary
does not typically
apply to the product, service, or result created by the project;
most projects are
undertaken to create a lasting outcome. For example, a project
to build a national
monument will create a result expected to last for centuries.
Projects can also have

social, economic, and environmental impacts that far outlive the
projects
themselves.
Every project creates a unique product, service, or result. The
outcome of the
project may be tangible or intangible. Although repetitive
elements may be present
in some project deliverables and activities, this repetition does
not change the
fundamental, unique characteristics of the project work. For
example, office
buildings can be constructed with the same or similar materials
and by the same or
different teams. However, each building project remains unique
with a different
location, different design, different circumstances and
situations, different
stakeholders, and so on.
An ongoing work effort is generally a repetitive process that
follows an
organization's existing procedures. In contrast, because of the
unique nature of
projects, there may be uncertainties or differences in the
products, services, or
results that the project creates. Project activities can be new to
members of a
project team, which may necessitate more dedicated planning
than other routine
work. In addition, projects are undertaken at all organizational
levels. A project
can involve a single individual or multiple individuals, a single
organizational unit,
or multiple organizational units from multiple organizations.

27
A project can create:
A product that can be either a component of another item, an
enhancement of
an item, or an end item in itself;
A service or a capability to perform a service (e.g., a business
function that
supports production or distribution);
An improvement in the existing product or service lines (e.g., A
Six Sigma
project undertaken to reduce defects); or
A result, such as an outcome or document (e.g., a research
project that
develops knowledge that can be used to determine whether a
trend exists or
a new process will benefit society).
Examples of projects include, but are not limited to:
Developing a new product, service, or result;
Effecting a change in the structure, processes, staffing, or style
of an
organization;
Developing or acquiring a new or modified information system
(hardware
or software);
Conducting a research effort whose outcome will be aptly
recorded;
Constructing a building, industrial plant, or infrastructure; or
Implementing, improving, or enhancing existing business
processes and
procedures.

1.2.1. The Relationships Among Portfolios, Programs, and
Projects
The relationship among portfolios, programs, and projects is
such that a portfolio
refers to a collection of projects, programs, subportfolios, and
operations managed
as a group to achieve strategic objectives. Programs are grouped
within a portfolio
and are comprised of subprograms, projects, or other work that
are managed in a
coordinated fashion in support of the portfolio. Individual
projects that are either
within or outside of a program are still considered part of a
portfolio. Although the
projects or programs within the portfolio may not necessarily be
interdependent or
directly related, they are linked to the organization's strategic
plan by means of the
organization's portfolio.
As Figure 1-1 illustrates, organizational strategies and priorities
are linked and
have relationships between portfolios and programs, and
between programs and
individual projects. Organizational planning impacts the
projects by means of
project prioritization based on risk, funding, and other
considerations relevant to
the organization's strategic plan. Organizational planning can
direct the management
of resources, and support for the component projects on the
basis of risk categories,
specific lines of business, or general types of projects, such as
infrastructure and

28
process improvement.
Project management is the application of knowledge, skills,
tools, and techniques
to project activities to meet the project requirements. Project
management is
accomplished through the appropriate application and
integration of the 47
logically grouped project management processes, which are
categorized into five
Process Groups. These five Process Groups are:
Initiating,
Planning,
Executing,
Monitoring and Controlling, and
Closing.
Managing a project typically includes, but is not limited to:
Identifying requirements;
Addressing the various needs, concerns, and expectations of the
stakeholders in planning and executing the project;
29
Setting up, maintaining, and carrying out communications

among
stakeholders that are active, effective, and collaborative in
nature;
Managing stakeholders towards meeting project requirements
and creating
project deliverables;
Balancing the competing project constraints, which include, but
are not
limited to:
Scope,
Quality,
Schedule,
Budget,
Resources, and
Risks.
The specific project characteristics and circumstances can
influence the
constraints on which the project management team needs to
focus.
The relationship among these factors is such that if any one
factor changes, at
least one other factor is likely to be affected. For example, if
the schedule is
shortened, often the budget needs to be increased to add
additional resources to
complete the same amount of work in less time. If a budget
increase is not possible,
the scope or targeted quality may be reduced to deliver the
project's end result in
less time within the same budget amount. Project stakeholders
may have differing
ideas as to which factors are the most important, creating an
even greater challenge.

Changing the project requirements or objectives may create
additional risks. The
project team needs to be able to assess the situation, balance the
demands, and
maintain proactive communication with stakeholders in order to
deliver a
successful project.
Due to the potential for change, the development of the project
management plan
is an iterative activity and is progressively elaborated
throughout the project's life
cycle. Progressive elaboration involves continuously improving
and detailing a
plan as more detailed and specific information and more
accurate estimates become
available. Progressive elaboration allows a project management
team to define
work and manage it to a greater level of detail as the project
evolves.
1.4 Relationships Among Portfolio Management,
Program Management, Project Management, and
Organizational Project Management
In order to understand portfolio, program, and project
management, it is
important to recognize the similarities and differences among
these disciplines. It is
also helpful to understand how they relate to organizational
project management
30

(OPM). OPM is a strategy execution framework utilizing
project, program, and
portfolio management as well as organizational enabling
practices to consistently
and predictably deliver organizational strategy producing better
performance,
better results, and a sustainable competitive advantage.
Portfolio, program, and project management are aligned with or
driven by
organizational strategies. Conversely, portfolio, program, and
project management
differ in the way each contributes to the achievement of
strategic goals. Portfolio
management aligns with organizational strategies by selecting
the right programs or
projects, prioritizing the work, and providing the needed
resources, whereas
program management harmonizes its projects and program
components and controls
interdependencies in order to realize specified benefits. Project
management
develops and implements plans to achieve a specific scope that
is driven by the
objectives of the program or portfolio it is subjected to and,
ultimately, to
organizational strategies. OPM advances organizational
capability by linking
project, program, and portfolio management principles and
practices with
organizational enablers (e.g. structural, cultural, technological,
and human resource
practices) to support strategic goals. An organization measures
its capabilities, then
plans and implements improvements towards the systematic
achievement of best

practices.
Table 1-1 shows the comparison of project, program, and
portfolio views across
several dimensions within the organization.
31
1.4.1 Program Management
A program is defined as a group of related projects,
subprograms, and program
activities managed in a coordinated way to obtain benefits not
available from
managing them individually. Programs may include elements of
related work
outside the scope of the discrete projects in the program. A
project may or may not
be part of a program but a program will always have projects.
Program management is the application of knowledge, skills,
tools, and
techniques to a program in order to meet the program
requirements and to obtain
benefits and control not available by managing projects
individually.
Projects within a program are related through the common
outcome or collective
capability. If the relationship between projects is only that of a
shared client, seller,
technology, or resource, the effort should be managed as a
portfolio of projects

32
rather than as a program.
Program management focuses on the project interdependencies
and helps to
determine the optimal approach for managing them. Actions
related to these
interdependencies may include:
Resolving resource constraints and/or conflicts that affect
multiple projects
within the program,
Aligning organizational/strategic direction that affects project
and program
goals and objectives, and
Resolving issues and change management within a shared
governance
structure.
An example of a program is a new communications satellite
system with projects
for design of the satellite and the ground stations, the
construction of each, the
integration of the system, and the launch of the satellite.
1.4.2 Portfolio Management
A portfolio refers to projects, programs, subportfolios, and
operations managed
as a group to achieve strategic objectives. The projects or
programs of the portfolio
may not necessarily be interdependent or directly related. For
example, an

infrastructure firm that has the strategic objective of
“maximizing the return on its
investments” may put together a portfolio that includes a mix of
projects in oil and
gas, power, water, roads, rail, and airports. From this mix, the
firm may choose to
manage related projects as one program. All of the power
projects may be grouped
together as a power program. Similarly, all of the water projects
may be grouped
together as a water program. Thus, the power program and the
water program
become integral components of the enterprise portfolio of the
infrastructure firm.
Portfolio management refers to the centralized management of
one or more
portfolios to achieve strategic objectives. Portfolio management
focuses on
ensuring that projects and programs are reviewed to prioritize
resource allocation,
and that the management of the portfolio is consistent with and
aligned to
organizational strategies.
1.4.3 Projects and Strategic Planning
Projects are often utilized as a means of directly or indirectly
achieving
objectives within an organization's strategic plan. Projects are
typically authorized
as a result of one or more of the following strategic
considerations:
Market demand (e.g., a car company authorizing a project to
build more

fuel-efficient cars in response to gasoline shortages);
Strategic opportunity/business need (e.g., a training company
authorizing a
project to create a new course to increase its revenues);
33
Social need (e.g., a nongovernmental organization in a
developing country
authorizing a project to provide potable water systems, latrines,
and
sanitation education to communities suffering from high rates of
infectious
diseases);
Environmental consideration (e.g., a public company
authorizing a project
to create a new service for electric car sharing to reduce
pollution);
Customer request (e.g., an electric utility authorizing a project
to build a
new substation to serve a new industrial park);
Technological advance (e.g., an electronics firm authorizing a
new project
to develop a faster, cheaper, and smaller laptop based on
advances in
computer memory and electronics technology); and
Legal requirement (e.g., a chemical manufacturer authorizing a
project to
establish guidelines for proper handling of a new toxic
material).
Projects, within programs or portfolios, are a means of
achieving organizational
goals and objectives, often in the context of a strategic plan.

Although a group of
projects within a program can have discrete benefits, they can
also contribute to the
benefits of the program, to the objectives of the portfolio, and
to the strategic plan
of the organization.
Organizations manage portfolios based on their strategic plan.
One goal of
portfolio management is to maximize the value of the portfolio
through careful
examination of its components—the constituent programs,
projects, and other
related work. Those components contributing the least to the
portfolio's strategic
objectives may be excluded. In this way, an organization's
strategic plan becomes
the primary factor guiding investments in projects. At the same
time, projects
provide feedback to programs and portfolios by means of status
reports, lessons
learned, and change requests that may help to identify impacts
to other projects,
programs, or portfolios. The needs of the projects, including the
resource needs,
are rolled up and communicated back to the portfolio level,
which in turn sets the
direction for organizational planning.
1.4.4 Project Management Office
A project management office (PMO) is a management structure
that standardizes
the project-related governance processes and facilitates the
sharing of resources,
methodologies, tools, and techniques. The responsibilities of a

PMO can range
from providing project management support functions to
actually being responsible
for the direct management of one or more projects.
There are several types of PMO structures in organizations,
each varying in the
degree of control and influence they have on projects within the
organization, such
as:
Supportive. Supportive PMOs provide a consultative role to
projects by
34
supplying templates, best practices, training, access to
information and
lessons learned from other projects. This type of PMO serves as
a project
repository. The degree of control provided by the PMO is low.
Controlling. Controlling PMOs provide support and require
compliance
through various means. Compliance may involve adopting
project
management frameworks or methodologies, using specific
templates, forms
and tools, or conformance to governance. The degree of control
provided
by the PMO is moderate.
Directive. Directive PMOs take control of the projects by
directly
managing the projects. The degree of control provided by the
PMO is high.

The PMO integrates data and information from corporate
strategic projects and
evaluates how higher level strategic objectives are being
fulfilled. The PMO is the
natural liaison between the organization's portfolios, programs,
projects, and the
corporate measurement systems (e.g. balanced scorecard).
The projects supported or administered by the PMO may not be
related, other
than by being managed together. The specific form, function,
and structure of a
PMO are dependent upon the needs of the organization that it
supports.
A PMO may have the authority to act as an integral stakeholder
and a key
decision maker throughout the life of each project, to make
recommendations, or to
terminate projects or take other actions, as required, to remain
aligned with the
business objectives. In addition, the PMO may be involved in
the selection,
management, and deployment of shared or dedicated project
resources.
A primary function of a PMO is to support project managers in
a variety of ways
which may include, but are not limited to:
Managing shared resources across all projects administered by
the PMO;
Identifying and developing project management methodology,
best
practices, and standards;

Coaching, mentoring, training, and oversight;
Monitoring compliance with project management standards,
policies,
procedures, and templates by means of project audits;
Developing and managing project policies, procedures,
templates, and other
shared documentation (organizational process assets); and
Coordinating communication across projects.
Project managers and PMOs pursue different objectives and, as
such, are driven
by different requirements. All of these efforts are aligned with
the strategic needs of
the organization. Differences between the role of project
managers and a PMO may
include the following:
The project manager focuses on the specified project objectives,
while the
35
PMO manages major program scope changes, which may be
seen as
potential opportunities to better achieve business objectives.
The project manager controls the assigned project resources to
best meet
project objectives, while the PMO optimizes the use of shared
organizational resources across all projects.
The project manager manages the constraints (scope, schedule,
cost, quality,
etc.) of the individual projects, while the PMO manages the
methodologies,
standards, overall risks/opportunities, metrics, and

interdependencies
among projects at the enterprise level.
1.5 Relationship Between Project Management,
Operations Management, and Organizational
Strategy
Operations management is responsible for overseeing, directing,
and controlling
business operations. Operations evolve to support the day-to-
day business, and are
necessary to achieve strategic and tactical goals of the business.
Examples include:
production operations, manufacturing operations, accounting
operations, software
support, and maintenance.
Though temporary in nature, projects can help achieve the
organizational goals
when they are aligned with the organization's strategy.
Organizations sometimes
change their operations, products, or systems by creating
strategic business
initiatives that are developed and implemented through projects.
Projects require
project management activities and skill sets, while operations
require business
process management, operations management activities, and
skill sets.
1.5.1 Operations and Project Management
Changes in business operations may be the focus of a dedicated
project—
especially if there are substantial changes to business operations
as a result of a

new product or service delivery. Ongoing operations are outside
of the scope of a
project; however, there are intersecting points where the two
areas cross.
Projects can intersect with operations at various points during
the product life
cycle, such as:
At each closeout phase;
When developing a new product, upgrading a product, or
expanding outputs;
While improving operations or the product development
process; or
Until the end of the product life cycle.
At each point, deliverables and knowledge are transferred
between the project
and operations for implementation of the delivered work. This
implementation
36
occurs through a transfer of project resources to operations
toward the end of the
project, or through a transfer of operational resources to the
project at the start.
Operations are ongoing endeavors that produce repetitive
outputs, with resources
assigned to do basically the same set of tasks according to the
standards
institutionalized in a product life cycle. Unlike the ongoing
nature of operations,

projects are temporary endeavors.
1.5.1.1 Operations Management
Operations management is a subject area that is outside the
scope of formal
project management as described in this standard.
Operations management is an area of management concerned
with ongoing
production of goods and/or services. It involves ensuring that
business operations
continue efficiently by using the optimum resources needed and
meeting customer
demands. It is concerned with managing processes that
transform inputs (e.g.,
materials, components, energy, and labor) into outputs (e.g.,
products, goods,
and/or services).
1.5.1.2 Operational Stakeholders in Project Management
While operations management is different from project
management (see
1.5.1.1), the needs of stakeholders who perform and conduct
business operations
are important considerations in projects that will affect their
future work and
endeavors. Project managers who consider and appropriately
include operational
stakeholders in all phases of projects, gain insight and avoid
unnecessary issues
that often arise when their input is overlooked.
Operational stakeholders should be engaged and their needs
identified as part of

the stakeholder register, and their influence (positive or
negative) should be
addressed as part of the risk management plan.
The following list includes examples of operational
stakeholders (depending
upon the business):
Plant operators,
Manufacturing line supervisors,
Help desk staff,
Production system support analysts,
Customer service representative,
Salespersons,
Maintenance workers,
Telephone sales personnel,
Call center personnel,
37
Retail workers,
Line managers, and
Training officers.
1.5.2 Organizations and Project Management
Organizations use governance to establish strategic direction
and performance
parameters. The strategic direction provides the purpose,
expectations, goals, and
actions necessary to guide business pursuit and is aligned with
business objectives.
Project management activities should be aligned with top-level
business direction,

and if there is a change, then project objectives need to be
realigned. In a project
environment, changes to project objectives affect project
efficiency and success.
When the business alignment for a project is constant, the
chance for project
success greatly increases because the project remains aligned
with the strategic
direction of the organization. Should something change,
projects should change
accordingly.
1.5.2.1 Project-Based Organizations
Project-based organizations (PBOs) refer to various
organizational forms that
create temporary systems for carrying out their work. PBOs can
be created by
different types of organizations (i.e., functional, matrix, or
projectized (see 2.1.3)).
The use of PBOs may diminish the hierarchy and bureaucracy
inside the
organizations as the success of the work is measured by the
final result rather than
by position or politics.
PBOs conduct the majority of their work as projects and/or
provide project
rather than functional approaches. PBOs can refer to either
entire firms (as in
telecommunications, oil and gas, construction, consultancy, and
professional
services) multi-firm consortia, or networks; it is also possible
that some large
project-based organizations have functional support areas or
that the PBO is nested

within subsidiaries or divisions of larger corporations.
1.5.2.2 The Link Between Project Management and
Organizational Governance
Projects (and programs) are undertaken to achieve strategic
business outcomes,
for which many organizations now adopt formal organizational
governance
processes and procedures. Organizational governance criteria
can impose
constraints on projects—particularly if the project delivers a
service which will be
subject to strict organizational governance.
Because project success may be judged on the basis of how well
the resultant
product or service supports organizational governance, it is
important for the
project manager to be knowledgeable about
corporate/organizational governance
policies and procedures pertaining to the subject matter of the
product or service
38
(e.g., if an organization has adopted policies in support of
sustainability practices
and the project involves construction of a new office building,
the project manager
should be aware of sustainability requirements related to
building construction.)
1.5.2.3 The Relationship Between Project Management and

Organizational Strategy
Organizational strategy should provide guidance and direction
to project
management—especially when one considers that projects exist
to support
organizational strategies. Often it is the project sponsor or the
portfolio or program
manager who identifies alignment or potential conflicts between
organizational
strategies and project goals and then communicates these to the
project manager. If
the goals of a project are in conflict with an established
organizational strategy, it is
incumbent upon the project manager to document and identify
such conflicts as
early as possible in the project. At times, the development of an
organizational
strategy could be the goal of a project rather than a guiding
principle. In such a
case, it is important for the project to specifically define what
constitutes an
appropriate organizational strategy that will sustain the
organization.
1.6 Business Value
Business value is a concept that is unique to each organization.
Business value is
defined as the entire value of the business; the total sum of all
tangible and
intangible elements. Examples of tangible elements include
monetary assets,
fixtures, stockholder equity, and utility. Examples of intangible
elements include
good will, brand recognition, public benefit, and trademarks.

Depending on the
organization, business value scope can be short-, medium-, or
long-term. Value may
be created through the effective management of ongoing
operations. However,
through the effective use of portfolio, program, and project
management,
organizations will possess the ability to employ reliable,
established processes to
meet strategic objectives and obtain greater business value from
their project
investments. While not all organizations are business driven, all
organizations
conduct business-related activities. Whether an organization is a
government
agency or a nonprofit organization, all organizations focus on
attaining business
value for their activities.
Successful business value realization begins with
comprehensive strategic
planning and management. Organizational strategy can be
expressed through the
organization's mission and vision, including orientation to
markets, competition,
and other environmental factors. Effective organizational
strategy provides defined
directions for development and growth, in addition to
performance metrics for
success. In order to bridge the gap between organizational
strategy and successful
business value realization, the use of portfolio, program, and
project management
techniques is essential.
39

Portfolio management aligns components (projects, programs,
or operations) to
the organizational strategy, organized into portfolios or
subportfolios to optimize
project or program objectives, dependencies, costs, timelines,
benefits, resources,
and risks. This allows organizations to have an overall view of
how the strategic
goals are reflected in the portfolio, institute appropriate
governance management,
and authorize human, financial, or material resources to be
allocated based on
expected performance and benefits.
Using program management, organizations have the ability to
align multiple
projects for optimized or integrated costs, schedule, effort, and
benefits. Program
management focuses on project interdependencies and helps to
determine the
optimal approach for managing and realizing the desired
benefits.
With project management, organizations have the ability to
apply knowledge,
processes, skills, and tools and techniques that enhance the
likelihood of success
over a wide range of projects. Project management focuses on
the successful
delivery of products, services, or results. Within programs and
portfolios, projects
are a means of achieving organizational strategy and objectives.

Organizations can further facilitate the alignment of these
portfolio, program, and
project management activities by strengthening organizational
enablers such as
structural, cultural, technological, and human resource
practices. By continuously
conducting portfolio strategic alignment and optimization,
performing business
impact analyses, and developing robust organizational enablers,
organizations can
achieve successful transitions within the portfolio, program, and
project domains
and attain effective investment management and business value
realization.
The project manager is the person assigned by the performing
organization to
lead the team that is responsible for achieving the project
objectives. The role of a
project manager is distinct from a functional manager or
operations manager.
Typically the functional manager is focused on providing
management oversight for
a functional or a business unit, and operations managers are
responsible for
ensuring that business operations are efficient.
Depending on the organizational structure, a project manager
may report to a
functional manager. In other cases, a project manager may be
one of several project
managers who report to a program or portfolio manager who is
ultimately
responsible for enterprise-wide projects. In this type of

structure, the project
manager works closely with the program or portfolio manager to
achieve the
project objectives and to ensure the project management plan
aligns with the
overarching program plan. The project manager also works
closely and in
collaboration with other roles, such as a business analyst,
quality assurance
manager, and subject matter experts.
40
1.7.1 Responsibilities and Competencies of the Project Manager
In general, project managers have the responsibility to satisfy
the needs: task
needs, team needs, and individual needs. As project
management is a critical
strategic discipline, the project manager becomes the link
between the strategy and
the team. Projects are essential to the growth and survival of
organizations.
Projects create value in the form of improved business
processes, are
indispensable in the development of new products and services,
and make it easier
for companies to respond to changes in the environment,
competition, and the
marketplace. The project manager's role therefore becomes
increasingly strategic.
However, understanding and applying the knowledge, tools, and
techniques that are
recognized as good practice are not sufficient for effective

project management. In
addition to any area-specific skills and general management
proficiencies required
for the project, effective project management requires that the
project manager
possess the following competencies:
Knowledge—Refers to what the project manager knows about
project
management.
Performance—Refers to what the project manager is able to do
or
accomplish while applying his or her project management
knowledge.
Personal—Refers to how the project manager behaves when
performing the
project or related activity. Personal effectiveness encompasses
attitudes,
core personality characteristics, and leadership, which provides
the ability
to guide the project team while achieving project objectives and
balancing
the project constraints.
1.7.2 Interpersonal Skills of a Project Manager
Project managers accomplish work through the project team and
other
stakeholders. Effective project managers require a balance of
technical,
interpersonal, and conceptual skills that help them analyze
situations and interact
appropriately. Appendix X3 on Interpersonal Skills describes
important
interpersonal skills, such as:

Leadership,
Team building,
Motivation,
Communication,
Influencing,
Decision making,
Political and cultural awareness,
Negotiation,
Trust building,
41
Conflict management, and
Coaching.
The PMBOK® Guide contains the standard for managing most
projects most of
the time across many types of industries. The standard, included
in Annex A1,
describes the project management processes used to manage a
project toward a
more successful outcome.
This standard is unique to the project management field and has
interrelationships to other project management disciplines such
as program
management and portfolio management.
Project management standards do not address all details of
every topic. This
standard is limited to individual projects and the project
management processes

that are generally recognized as good practice. Other standards
may be consulted
for additional information on the broader context in which
projects are
accomplished, such as:
The Standard for Program Management [3] addresses the
management of
programs,
The Standard for Portfolio Management [4] addresses the
management of
portfolios,
Organizational Project Management Maturity Model (OPM3®)
[5]
examines an enterprise's project management process
capabilities.
1The numbers in brackets refer to the list of references at the
end of this standard.
42
2
ORGANIZATIONAL INFLUENCES AND PROJECT
LIFE CYCLE
Projects and project management take place in an environment
that is broader
than that of the project itself. Understanding this broader
context helps ensure that
work is carried out in alignment with the organization's goals
and managed in
accordance with the organization's established practices. This

section describes
how organizational influences affect the methods used for
staffing, managing, and
executing the project. It discusses the influence of stakeholders
on the project and
its governance, the project team's structure and membership,
and different
approaches to the phasing and relationship of activities within
the project's life
cycle. The following major sections are addressed:
2.3 Project Team
2.4 Project Life Cycle
An organization's culture, style, and structure influence how its
projects are
performed. The organization's level of project management
maturity and its project
management systems can also influence the project. When a
project involves
external entities such as those that are part of a joint venture or
partnering
agreement, the project will be influenced by more than one
organization. The
following sections describe organizational characteristics,
factors, and assets
within an enterprise that are likely to influence the project.
2.1.1 Organizational Cultures and Styles

Organizations are systematic arrangements of entities (persons
and/or
departments) aimed at accomplishing a purpose, which may
involve undertaking
projects. An organization's culture and style affect how it
conducts projects.
Cultures and styles are group phenomena known as cultural
norms, which develop
over time. The norms include established approaches to
initiating and planning
projects, the means considered acceptable for getting the work
done, and
recognized authorities who make or influence decisions.
Organizational culture is shaped by the common experiences of
members of the
43
organization and most organizations have developed unique
cultures over time by
practice and common usage. Common experiences include, but
are not limited to:
Shared visions, mission, values, beliefs, and expectations;
Regulations, policies, methods, and procedures;
Motivation and reward systems;
Risk tolerance;
View of leadership, hierarchy, and authority relationships;
Code of conduct, work ethic, and work hours; and
Operating environments.
The organization's culture is an enterprise environmental factor,

as described in
Section 2.1.5. Cultures and styles are learned and shared and
may have a strong
influence on a project's ability to meet its objectives. A project
manager should
therefore understand the different organizational styles and
cultures that may affect
a project. The project manager needs to know which individuals
in the organization
are the decision makers or influencers and work with them to
increase the
probability of project success.
In light of globalization, understanding the impact of cultural
influences is
critical in projects involving diverse organizations and locations
around the world.
Culture becomes a critical factor in defining project success,
and multicultural
competence becomes critical for the project manager.
2.1.2 Organizational Communications
Project management success in an organization is highly
dependent on an
effective organizational communication style, especially in the
face of globalization
of the project management profession. Organizational
communications capabilities
have great influence on how projects are conducted. As a
consequence, project
managers in distant locations are able to more effectively
communicate with all
relevant stakeholders within the organizational structure to
facilitate decision
making. Stakeholders and project team members can also use

electronic
communications (including e-mail, texting, instant messaging,
social media, video
and web conferencing, and other forms of electronic media) to
communicate with
the project manager formally or informally.
2.1.3 Organizational Structures
Organizational structure is an enterprise environmental factor,
which can affect
the availability of resources and influence how projects are
conducted (see also
Section 2.1.5). Organizational structures range from functional
to projectized, with
a variety of matrix structures in between. Table 2-1 shows key
project-related
characteristics of the major types of organizational structures.
44
The classic functional organization, shown in Figure 2-1, is a
hierarchy where
each employee has one clear superior. Staff members are
grouped by specialty,
such as production, marketing, engineering, and accounting at
the top level.
Specialties may be further subdivided into focused functional
units, such as
mechanical and electrical engineering. Each department in a
functional organization
will do its project work independently of other departments.
Matrix organizations, as shown in Figures 2-2 through 2-4,

reflect a blend of
functional and projectized characteristics. Matrix organizations
can be classified as
weak, balanced, or strong depending on the relative level of
power and influence
45
between functional and project managers. Weak matrix
organizations maintain many
of the characteristics of a functional organization, and the role
of the project
manager is more of a coordinator or expediter. A project
expediter works as staff
assistant and communications coordinator. The expediter cannot
personally make or
enforce decisions. Project coordinators have power to make
some decisions, have
some authority, and report to a higher-level manager. Strong
matrix organizations
have many of the characteristics of the projectized organization,
and have full-time
project managers with considerable authority and full-time
project administrative
staff. While the balanced matrix organization recognizes the
need for a project
manager, it does not provide the project manager with the full
authority over the
project and project funding. Table 2-1 provides additional
details of the various
matrix organizational structures.
46

At the opposite end of the spectrum to the functional
organization is the
projectized organization, shown in Figure 2-5. In a projectized
organization, team
members are often colocated. Most of the organization's
resources are involved in
project work, and project managers have a great deal of
independence and
authority. Virtual collaboration techniques are often used to
accomplish the benefits
of colocated teams. Projectized organizations often have
organizational units called
47
departments, but they can either report directly to the project
manager or provide
support services to the various projects.
Many organizations involve all these structures at various
levels, often referred
to as a composite organization, as shown in Figure 2-6. For
example, even a
fundamentally functional organization may create a special
project team to handle a
critical project. Such a team may have many of the
characteristics of a project team
in a projectized organization. The team may include full-time
staff from different
functional departments, may develop its own set of operating
procedures, and may
even operate outside of the standard, formalized reporting

structure during the
project. Also, an organization may manage most of its projects
in a strong matrix,
but allow small projects to be managed by functional
departments.
48
Many organizational structures include strategic, middle
management, and
operational levels. The project manager may interact with all
three levels
depending on factors such as:
Strategic importance of the project,
Capacity of stakeholders to exert influence on the project,
Degree of project management maturity,
Project management systems, and
Organizational communications.
This interaction determines project characteristics such as:
Project manager's level of authority,
Resource availability and management,
Entity controlling the project budget,
Project manager's role, and
Project team composition.
2.1.4 Organizational Process Assets
Organizational process assets are the plans, processes, policies,
procedures, and
knowledge bases specific to and used by the performing
organization. They include

any artifact, practice, or knowledge from any or all of the
organizations involved in
the project that can be used to perform or govern the project.
The process assets
49
also include the organization's knowledge bases such as lessons
learned and
historical information. Organizational process assets may
include completed
schedules, risk data, and earned value data. Organizational
process assets are
inputs to most planning processes. Throughout the project, the
project team
members may update and add to the organizational process
assets as necessary.
Organizational process assets may be grouped into two
categories: (1) processes
and procedures, and (2) corporate knowledge base.
2.1.4.1 Processes and Procedures
The organization's processes and procedures for conducting
project work
include, but are not limited to:
Initiating and Planning:
Guidelines and criteria for tailoring the organization's set of
standard
processes and procedures to satisfy the specific needs of the
project;
Specific organizational standards such as policies (e.g., human
resources policies, health and safety policies, ethics policies,

and
project management policies), product and project life cycles,
and
quality policies and procedures (e.g., process audits,
improvement
targets, checklists, and standardized process definitions for use
in the
organization); and
Templates (e.g., risk register, work breakdown structure, project
schedule network diagram, and contract templates).
Executing, Monitoring and Controlling:
Change control procedures, including the steps by which
performing
organization standards, policies, plans, and procedures or any
project documents will be modified, and how any changes will
be
approved and validated;
Financial controls procedures (e.g., time reporting, required
expenditure and disbursement reviews, accounting codes, and
standard contract provisions);
Issue and defect management procedures defining issue and
defect
controls, issue and defect identification and resolution, and
action
item tracking;
Organizational communication requirements (e.g., specific
communication technology available, authorized communication
media, record retention policies, and security requirements);
Procedures for prioritizing, approving, and issuing work
authorizations;
Risk control procedures, including risk categories, risk
statement
50

templates, probability and impact definitions, and probability
and
impact matrix; and
Standardized guidelines, work instructions, proposal evaluation
criteria, and performance measurement criteria.
Closing:
Project closure guidelines or requirements (e.g., lessons
learned,
final project audits, project evaluations, product validations,
and
acceptance criteria).
2.1.4.2 Corporate Knowledge Base
The organizational knowledge base for storing and retrieving
information
includes, but is not limited to:
Configuration management knowledge bases containing the
versions and
baselines of all performing organization standards, policies,
procedures,
and any project documents;
Financial databases containing information such as labor hours,
incurred
costs, budgets, and any project cost overruns;
Historical information and lessons learned knowledge bases
(e.g., project
records and documents, all project closure information and
documentation,
information regarding both the results of previous project
selection
decisions and previous project performance information, and

information
from risk management activities);
Issue and defect management databases containing issue and
defect status,
control information, issue and defect resolution, and action item
results;
Process measurement databases used to collect and make
available
measurement data on processes and products; and
Project files from previous projects (e.g., scope, cost, schedule,
and
performance measurement baselines, project calendars, project
schedule
network diagrams, risk registers, planned response actions, and
defined risk
impact).
2.1.5 Enterprise Environmental Factors
Enterprise environmental factors refer to conditions, not under
the control of the
project team, that influence, constrain, or direct the project.
Enterprise
environmental factors are considered inputs to most planning
processes, may
enhance or constrain project management options, and may have
a positive or
negative influence on the outcome.
Enterprise environmental factors vary widely in type or nature.
Enterprise
environmental factors include, but are not limited to:
51

Organizational culture, structure, and governance;
Geographic distribution of facilities and resources;
Government or industry standards (e.g., regulatory agency
regulations,
codes of conduct, product standards, quality standards, and
workmanship
standards);
Infrastructure (e.g., existing facilities and capital equipment);
Existing human resources (e.g., skills, disciplines, and
knowledge, such as
design, development, legal, contracting, and purchasing);
Personnel administration (e.g., staffing and retention guidelines,
employee
performance reviews and training records, reward and overtime
policy, and
time tracking);
Company work authorization systems;
Marketplace conditions;
Stakeholder risk tolerances;
Political climate;
Organization's established communications channels;
Commercial databases (e.g., standardized cost estimating data,
industry risk
study information, and risk databases); and
Project management information system (e.g., an automated
tool, such as a
scheduling software tool, a configuration management system,
an
information collection and distribution system, or web
interfaces to other
online automated systems).
A stakeholder is an individual, group, or organization who may
affect, be

affected by, or perceive itself to be affected by a decision,
activity, or outcome of a
project. Stakeholders may be actively involved in the project or
have interests that
may be positively or negatively affected by the performance or
completion of the
project. Different stakeholders may have competing
expectations that might create
conflicts within the project. Stakeholders may also exert
influence over the project,
its deliverables, and the project team in order to achieve a set of
outcomes that
satisfy strategic business objectives or other needs. Project
governance—the
alignment of the project with stakeholders’ needs or
objectives—is critical to the
successful management of stakeholder engagement and the
achievement of
organizational objectives. Project governance enables
organizations to consistently
manage projects and maximize the value of project outcomes
and align the projects
with business strategy. It provides a framework in which the
project manager and
sponsors can make decisions that satisfy both stakeholder needs
and expectations
and organizational strategic objectives or address circumstances
where these may
52
not be in alignment.

2.2.1 Project Stakeholders
Stakeholders include all members of the project team as well as
all interested
entities that are internal or external to the organization. The
project team identifies
internal and external, positive and negative, and performing and
advising
stakeholders in order to determine the project requirements and
the expectations of
all parties involved. The project manager should manage the
influences of these
various stakeholders in relation to the project requirements to
ensure a successful
outcome. Figure 2-7 illustrates the relationship between the
project, the project
team, and various stakeholders.
Stakeholders have varying levels of responsibility and authority
when
participating on a project. This level can change over the course
of the project's life
cycle. Their involvement may range from occasional
contributions in surveys and
focus groups to full project sponsorship which includes
providing financial,
political, or other support. Some stakeholders may also detract
from the success of
the project, either passively or actively. These stakeholders
require the project
manager's attention throughout the project's life cycle, as well
as planning to
address any issues they may raise.
Stakeholder identification is a continuous process throughout
the entire project

life cycle. Identifying stakeholders, understanding their relative
degree of influence
on a project, and balancing their demands, needs, and
expectations are critical to
the success of the project. Failure to do so can lead to delays,
cost increases,
53
unexpected issues, and other negative consequences including
project cancellation.
An example is late recognition that the legal department is a
significant stakeholder,
which results in delays and increased expenses due to legal
requirements that are
required to be met before the project can be completed or the
product scope is
delivered.
Just as stakeholders can positively or adversely impact a
project's objectives, a
project can be perceived by the stakeholders as having positive
or negative results.
For example, business leaders from a community who will
benefit from an
industrial expansion project will see positive economic benefits
to the community
in the form of additional jobs, supporting infrastructure, and
taxes. In the case of
stakeholders with positive expectations for the project, their
interests are best
served by making the project successful. In contrast, the
interests of negatively
affected stakeholders, such as nearby homeowners or small

business owners who
may lose property, be forced to relocate, or accept unwanted
changes in the local
environment, are served by impeding the project's progress.
Overlooking negative
stakeholder interests can result in an increased likelihood of
failures, delays, or
other negative consequences to the project.
An important part of a project manager's responsibility is to
manage stakeholder
expectations, which can be difficult because stakeholders often
have very different
or conflicting objectives. Part of the project manager's
responsibility is to balance
these interests and ensure that the project team interacts with
stakeholders in a
professional and cooperative manner. Project managers may
involve the project's
sponsor or other team members from different locations to
identify and manage
stakeholders that could be dispersed around the world.
The following are some examples of project stakeholders:
Sponsor. A sponsor is the person or group who provides
resources and
support for the project and is accountable for enabling success.
The sponsor
may be external or internal to the project manager's
organization. From
initial conception through project closure, the sponsor promotes
the project.
This includes serving as spokesperson to higher levels of
management to
gather support throughout the organization and promoting the

benefits the
project brings. The sponsor leads the project through the
initiating
processes until formally authorized, and plays a significant role
in the
development of the initial scope and charter. For issues that are
beyond the
control of the project manager, the sponsor serves as an
escalation path. The
sponsor may also be involved in other important issues such as
authorizing
changes in scope, phase-end reviews, and go/no-go decisions
when risks
are particularly high. The sponsor also ensures a smooth
transfer of the
project's deliverables into the business of the requesting
organization after
project closure.
Customers and users. Customers are the persons or
organizations who will
54
approve and manage the project's product, service, or result.
Users are the
persons or organizations who will use the project's product,
service, or
result. Customers and users may be internal or external to the
performing
organization and may also exist in multiple layers. For example,
the
customers for a new pharmaceutical product could include the
doctors who
prescribe it, the patients who use it and the insurers who pay for

it. In some
application areas, customers and users are synonymous, while in
others,
customers refer to the entity acquiring the project's product, and
users refer
to those who will directly utilize the project's product.
Sellers. Sellers, also called vendors, suppliers, or contractors,
are external
companies that enter into a contractual agreement to provide
components or
services necessary for the project.
Business partners. Business partners are external organizations
that have a
special relationship with the enterprise, sometimes attained
through a
certification process. Business partners provide specialized
expertise or
fill a specified role such as installation, customization, training,
or support.
Organizational groups. Organizational groups are internal
stakeholders
who are affected by the activities of the project team. Examples
of various
business elements of an organization that may be affected by
the project
include marketing and sales, human resources, legal, finance,
operations,
manufacturing, and customer service. These groups support the
business
environment where projects are executed, and are therefore
affected by the
activities of the project. As a result, there is generally a
significant amount
of interaction between the various business elements of an
organization and
the project team as they work together to achieve project goals.

These
groups may provide input to requirements and accept
deliverables
necessary for a smooth transition to production or related
operations.
Functional managers. Functional managers are key individuals
who play a
management role within an administrative or functional area of
the business,
such as human resources, finance, accounting, or procurement.
They are
assigned their own permanent staff to carry out the ongoing
work, and they
have a clear directive to manage all tasks within their functional
area of
responsibility. The functional manager may provide subject
matter expertise
or their function may provide services to the project.
Other stakeholders. Additional stakeholders, such as
procurement entities,
financial institutions, government regulators, subject matter
experts,
consultants, and others, may have a financial interest in the
project,
contribute inputs to the project, or have an interest in the
outcome of the
project.
Project stakeholders and stakeholder engagement are further
defined in Section
13 on Project Stakeholder Management.
55

2.2.2 Project Governance
Project governance is an oversight function that is aligned with
the organization's
governance model and that encompasses the project life cycle.
Project governance
framework provides the project manager and team with
structure, processes,
decision-making models and tools for managing the project,
while supporting and
controlling the project for successful delivery. Project
governance is a critical
element of any project, especially on complex and risky
projects. It provides a
comprehensive, consistent method of controlling the project and
ensuring its
success by defining and documenting and communicating
reliable, repeatable
project practices. It includes a framework for making project
decisions; defines
roles, responsibilities, and accountabilities for the success of
the project; and
determines the effectiveness of the project manager. A project's
governance is
defined by and fits within the larger context of the portfolio,
program, or
organization sponsoring it but is separate from organizational
governance.
For project governance, the PMO may also play some decisive
role. Project
governance involves stakeholders as well as documented
policies, procedures, and
standards; responsibilities; and authorities. Examples of the
elements of a project
governance framework include:

Project success and deliverable acceptance criteria;
Process to identify, escalate, and resolve issues that arise during
the
project;
Relationship among the project team, organizational groups, and
external
stakeholders;
Project organization chart that identifies project roles;
Processes and procedures for the communication of information;
Project decision-making processes;
Guidelines for aligning project governance and organizational
strategy;
Project life cycle approach;
Process for stage gate or phase reviews;
Process for review and approval for changes to budget, scope,
quality, and
schedule which are beyond the authority of the project manager;
and
Process to align internal stakeholders with project process
requirements.
Within those constraints, as well as the additional limitations of
time and budget,
it is up to the project manager and the project team to determine
the most
appropriate method of carrying out the project. While project
governance is the
framework in which the project team performs, the team is still
responsible for
planning, executing, controlling, and closing the project. The
project governance
approach should be described in the project management plan.
Decisions are made
56

regarding who will be involved, the escalation procedures, what
resources are
necessary, and the general approach to completing the work.
Another important
consideration is whether more than one phase will be involved
and, if so, the
specific life cycle for the individual project.
2.2.3 Project Success
Since projects are temporary in nature, the success of the
project should be
measured in terms of completing the project within the
constraints of scope, time,
cost, quality, resources, and risk as approved between the
project managers and
senior management. To ensure realization of benefits for the
undertaken project, a
test period (such as soft launch in services) can be part of the
total project time
before handing it over to the permanent operations. Project
success should be
referred to the last baselines approved by the authorized
stakeholders.
The project manager is responsible and accountable for setting
realistic and
achievable boundaries for the project and to accomplish the
project within the
approved baselines.
2.3 Project Team
The project team includes the project manager and the group of

individuals who
act together in performing the work of the project to achieve its
objectives. The
project team includes the project manager, project management
staff, and other team
members who carry out the work but who are not necessarily
involved with
management of the project. This team is comprised of
individuals from different
groups with specific subject matter knowledge or with a specific
skill set to carry
out the work of the project. The structure and characteristics of
a project team can
vary widely, but one constant is the project manager's role as
the leader of the team,
regardless of what authority the project manager may have over
its members.
Project teams include roles such as:
Project management staff. The members of the team who
perform project
management activities such as scheduling, budgeting, reporting
and control,
communications, risk management and administrative support.
This role
may be performed or supported by a project management office
(PMO).
Project staff. The members of the team who carry out the work
of creating
the project deliverables.
Supporting experts. Supporting experts perform activities
required to
develop or execute the project management plan. These can
include such

roles as contracting, financial management, logistics, legal,
safety,
engineering, test, or quality control. Depending on the size of
the project
and level of support required, supporting experts may be
assigned to work
full time or may just participate on the team when their
particular skills are
57
required.
User or Customer Representatives. Members of the organization
who
will accept the deliverables or products of the project may be
assigned to
act as representatives or liaisons to ensure proper coordination,
advise on
requirements, or validate the acceptability of the project's
results.
Sellers. Sellers, also called vendors, suppliers, or contractors,
are external
companies that enter into a contractual agreement to provide
components or
services necessary for the project. The project team is often
assigned the
responsibility to oversee the performance and acceptance of
sellers’
deliverables or services. If the sellers bear a large share of the
risk for
delivering the project's results, they may play a significant role
on the
project team.
Business partner members. Members of business partners’

organizations
may be assigned as members of the project team to ensure
proper
coordination.
Business partners. Business partners are also external
companies, but they
have a special relationship with the enterprise, sometimes
attained through
a certification process. Business partners provide specialized
expertise or
fill a specified role such as installation, customization, training,
or support.
2.3.1 Composition of Project Teams
The composition of project teams varies based on factors such
as organizational
culture, scope, and location. The relationship between the
project manager and the
team varies depending on the authority of the project manager.
In some cases, a
project manager may be the team's line manager, with full
authority over its
members. In other cases, a project manager may have little or
no direct
organizational authority over the team members and may have
been brought in to
lead the project on a part-time basis or under contract. The
following are examples
of basic project team compositions:
Dedicated. In a dedicated team, all or a majority of the project
team
members are assigned to work full-time on the project. The
project team
may be colocated or virtual and usually reports directly to the

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